arnoldon: service-how technology is reshaping customer service

21
7/30/2019 ArnoldOn: Service-How Technology Is Reshaping Customer Service http://slidepdf.com/reader/full/arnoldon-service-how-technology-is-reshaping-customer-service 1/21 SERVICE How Technology Is Reshaping Customer Service ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?

Upload: arnold-worldwide

Post on 14-Apr-2018

215 views

Category:

Documents


0 download

TRANSCRIPT

Page 1: ArnoldOn: Service-How Technology Is Reshaping Customer Service

7/30/2019 ArnoldOn: Service-How Technology Is Reshaping Customer Service

http://slidepdf.com/reader/full/arnoldon-service-how-technology-is-reshaping-customer-service 1/21

SERVICEHow Technology Is Reshaping Customer Service

? ? ?? ? ?

? ? ?

? ? ?

? ? ?

Page 2: ArnoldOn: Service-How Technology Is Reshaping Customer Service

7/30/2019 ArnoldOn: Service-How Technology Is Reshaping Customer Service

http://slidepdf.com/reader/full/arnoldon-service-how-technology-is-reshaping-customer-service 2/21

 Arnold on 

explores cultural, social

and consumer trends that are

directly impacting businesses today.

through a combination of cultural

observation and proprietary qualitative

and quantitative research, we aim to

uncover meaningful shifts in consumer

attitudes and behaviors and provide

marketers with ways to harness

these trends to benefit their

brands and businesses.

Page 3: ArnoldOn: Service-How Technology Is Reshaping Customer Service

7/30/2019 ArnoldOn: Service-How Technology Is Reshaping Customer Service

http://slidepdf.com/reader/full/arnoldon-service-how-technology-is-reshaping-customer-service 3/21

Service has traditionally focused on a

face-to-face specic interaction, but now

it’s about creating an experience that

transcends the transaction. Today, many

brands are elevating service from basic

(addressing a specic question or service

issue) to exceptional or luxury levels of 

service. And importantly, technology is

helping brands to move beyond basic

customer service to deliver these more

elevated service experiences. From

enabling more efcient and cost effective

service interactions, to building stronger

relationships with consumers through

social programs, to using customer data

to anticipate needs – brands have

leveraged technology to alter the service

dynamic.

ONTENTS

The Twin Pillars of Service 3

levating the Service Experience 11

he Impact of Technology 25

mplications 33

Still, many brands are failing to deliver.

According to a survey conducted by Arnold

Worldwide, 80 percent of consumers

expect good service, but 20 to 30 percent

of respondents say they aren’t getting it.

Most important, 71 percent have stopped

doing business with a brand due to poor

service.

So, what separates fan favorites, like

Apple, FedEx, Toyota and John Lewis,

from struggling brands, like AOL, Best

Buy and Blockbuster?

In this issue of Arnold: On Service , we

explore three themes that are shaping

the service experience:

1. The Twin Pillars of Service:

How Technology is Redening

Responsiveness and Personal Attentio

2. Elevating the Experience from Basi

to Exceptional to Luxury

3. The Impact of Technology: Three W

Brands Should Refocus

Page 4: ArnoldOn: Service-How Technology Is Reshaping Customer Service

7/30/2019 ArnoldOn: Service-How Technology Is Reshaping Customer Service

http://slidepdf.com/reader/full/arnoldon-service-how-technology-is-reshaping-customer-service 4/21

se rv ice

3

The spirit of service remains unchanged

in the 21st century. According to Arnold’s

survey on service, consumers worldwide

regard responsiveness and personal

attention as the twin pillars of positive

service. But technology has revolutionized

how brands should deliver service now

that the Internet has reset consumer

expectations, requiring brands to befaster and more targeted than ever.

THE TWINPILLARS OFSERVICE: HOW TECHNOLO IS REEFININRESPONSIVENESS AN PERSONAL

ATTENTION

Q. Please describe your best service experience.

Q. What makes good service unforgettable?

“Immediate resultswithout hassle isgood service.”

–U.S.

“Solving theproblem in atimely manner isgood service.”

–China

RESPONSIVENESS

SERVICE

PERSONAL

ATTENTION

“ood service isunforgettable whenthey know thecustomer’s wantsand needs.”

– Brazil

“ood servicemeans they aregenuinely caring,listen to my needsand make me feellike my purchasesare important tothem.”

– U.K.

Page 5: ArnoldOn: Service-How Technology Is Reshaping Customer Service

7/30/2019 ArnoldOn: Service-How Technology Is Reshaping Customer Service

http://slidepdf.com/reader/full/arnoldon-service-how-technology-is-reshaping-customer-service 5/21

RESPONSIVENESS

According to our survey, 76 percent of consumers feel that a speedy response

s the surest route to customer satisfaction. The Brazilians and Chinese felt this

most strongly, rating a quick answer as most important 80 to 84 percent of the

time. One Brazilian respondent said, “I went to a store and had immediate

attention. They answered all of my questions politely and gave me the necessary

nstructions for service to be performed quickly and with quality.”

Consumers expect an immediate and helpful response to their inquiries,

regardless of whether it’s in person, over the phone or online. Failure to provide

one can cost an enterprise repeat business and result in negative word of mouth.

More and more, a consumer’s rst interaction with a brand is online, not in

a brick-and-mortar store. If consumers cannot have a speedy and satisfying

experience online, they may never set foot on a sales oor. Brands must develop

strong customer relations across all brand properties, in store and online, in order

to woo consumers who can tap in across multiple devices and channels.

EPECTATIONS OF SPEE SERVICE

BENEFITS OF SPEE SERVICE

Q. How fast do you expect a brand to respond to a service issue?

Q. How do the following service attributes impact your relationship with a brand?

Of people globally would be more likelyto purchase a brand that provides aspeedy response to a service issue

U.S. China

43%Brazil

57%U.K.

39% 56%

Want a brand to respond to a serviceissue in one hour or less

of people globally would tell others about a brand that provides a speedy responseto a service issue

of people globally would be more loyal toa brand that provides a speedy responseto a service issue

49%

50%

37%

34%

Page 6: ArnoldOn: Service-How Technology Is Reshaping Customer Service

7/30/2019 ArnoldOn: Service-How Technology Is Reshaping Customer Service

http://slidepdf.com/reader/full/arnoldon-service-how-technology-is-reshaping-customer-service 6/21

Personal attention is the second service pillar, with 74 percent of people

wanting to be treated as individuals by the brands they do business with.

I made a hotel reservation, and the manager remembered me, made sure I

was treated well because of my past business,” said one American respondent.

Our survey also revealed that this kind of individual recognition drives loyalty

and purchase intent. About 48 percent of consumers told Arnold that theywould be more likely to purchase a brand product because they were given

personal treatment. And 36 percent said they’d remain loyal to that brand and

tell others about it.

PERSONAL ATTENTION

EPECTATIONS OF PERSONAL ATTENTION

BENEFITS OF PERSONAL ATTENTION

U.S. China

73%Brazil

73%U.K.

75% 78%

Of people globally would bemore loyal to a brand that provides personal attention

Of people globally would tellothers about a brand that provides personal attention

Want the brands they prefer totreat them like an individual74%

48%

36%

36%

Of people globally would be morelikely to purchase a brand that provides personal attention

Q. To what degree do you agree with the following statements?

Q. How do the following service attributes impact your relationship with a brand?

Page 7: ArnoldOn: Service-How Technology Is Reshaping Customer Service

7/30/2019 ArnoldOn: Service-How Technology Is Reshaping Customer Service

http://slidepdf.com/reader/full/arnoldon-service-how-technology-is-reshaping-customer-service 7/21

TECHNOLO ISREEFININ SERVICE

Companies are beginning to understand the role technology plays in developing

personal relationships. Recently, a igiday article reported that Marc Pritchard,

global marketing and brand building ofcer of P&, is deeply committed to

ensuring that the organization forges deeper personalized connections.

He said, “To address these [technology] forces, our vision is to build our brands

through lifelong, one-to-one relationships in real time with every person in the

world…Technology will mean that people will increasingly expect brands tounderstand their unique needs and deliver.”

While technology allows for tailored experiences online, good old-fashioned human

ntuition delivers the best results ofine. Most retail chains have intricate employee

handbooks and policy guidelines that aim to ensure a consistent experience at all

ocations. But shackling employees to company policy can discourage employees

rom delivering warm, personal service.

Companies that are known for delivering responsive and attentive service train

employees and empower them to make decisions. Brands like Southwest Airlines

and Four Seasons trust employees to anticipate customer needs and then to act

on their judgment. At the Four Seasons, for instance, a concierge who sees a family

with small children scheduled to check in may call ahead to see what fruit juices

should ll the mini-fridge.

As more people become brand agnostic, brands must better understand howtechnology and employee empowerment are redening “responsive” and “personal

attention” online and off.

SERVICE IN ACTION

Online eyewear purveyor Warby Parker

was conceived in a ush of consumer

indignation, so it’s no surprise that

customer service is one of the pillars

of its brand. Fed up with paying up

to $300 for prescription glasses, the

founders set out to design and sell

spectacles directly to consumers forless than $100 a pair.

Warby Parker has ourished with the

stylish set, but its reputation really turns

on its 21st-century-style service. The

company provides online tools that

recommend what styles will look best

on what types of faces and provides an

online try-on tool. Customers can order

up to ve sample frames to try on at

home for ve days, 100 percent free.

The policy keeps Warby Parker

competitive with the traditional

eyewear brands sold through

opticians and shows that the compan

understands today’s consumers.

Warby Parker realizes that consumers

might be reluctant to purchase frame

online since they’re afraid they’ll windup with the wrong ones. Its policy,

therefore, anticipates the wishes of its

customers, who want to try on their

stylish, inexpensive frames before

buying. There isn’t a esh-and-blood

sales rep helping with an in-store

selection, but Warby Parker gives

customers a personal experience by

letting them customize their sample s

and then buy the specs that suit them

WARB PARKER

Page 8: ArnoldOn: Service-How Technology Is Reshaping Customer Service

7/30/2019 ArnoldOn: Service-How Technology Is Reshaping Customer Service

http://slidepdf.com/reader/full/arnoldon-service-how-technology-is-reshaping-customer-service 8/21

Personal attention and responsiveness may be

at the core of all positive service experiences,

but in the 21st century they’re just table stakes.

Brands need to surprise and delight customers

if they want their reputations to shine. Oursurvey results showed that there are three

levels of customer service – basic, exceptional

and luxury – and that moving up takes focus

and commitment.

ELEVATINTHE SERVICEEPERIENCE

FROM BASIC TOECEPTIONALTO LUUR

BASIC

ECEPTIONAL

LUUR

approachable, honest, expected

caring, personal, exible

innovative, proactive, exclusive

Page 9: ArnoldOn: Service-How Technology Is Reshaping Customer Service

7/30/2019 ArnoldOn: Service-How Technology Is Reshaping Customer Service

http://slidepdf.com/reader/full/arnoldon-service-how-technology-is-reshaping-customer-service 9/21

BASIC SERVICE:APPROACHABLE,HONEST, EPECTE

The basic level of service is transactional and aims to solve problems as they

arise. It is dened by approachable associates, honest communications and

common courtesy. Consumers that expect only a basic level of service frombrands engage with limited expectations. Interactions that are friendly, if 

perfunctory, generally satisfy people at the basic service level.

When you go to the supermarket and you’re looking for a tube of toothpaste, the

ikelihood that you’ll engage with people when you pull something off the shelf is

not very high,” said Milton Pedroza, CEO of The Luxury Institute and a speaker on

the topic of customer service. “ou’re looking for price and convenience.”

While basic service used to be most closely associated with big-box stores,

mass-market chains and quick-service restaurants, brands that go a step

urther can outpace competitors in any category. Supermarket chains Waitrose

and Marks & Spencer in the U.K., and Costco and Wegman’s in the U.S., for

example, consistently rank among the best customer service companies across all

categories. They’ve transcended basic service by offering high-quality products,

treating their employees well and adding personal touches to the service

experience. Customers may walk in for toothpaste, but they walk out with

a greater love for the brand.

SERVICE IN ACTION

ORANE

NEWE

Orange, a telecommunications company

in the U.K., has a very comprehensive

online help-and-support center meant

to problem-solve for all of its customers.

The support is segmented into topics

such as mobile, broadband/home phone,

business help, traveling and calling

abroad, and then these categories are

further segmented into more specic

subcategories. The site is approachab

and comprehensive, and it enables

customers to solve their issues. But it

does not allow for the brand to conne

with the consumer on a personal leve

Newegg, a technology e-commerce site,

has a very in-depth online customer

service presence. Their website

features a very organized and detailed

FAQ page as well as easily accessible

contact information for service via

email, mail, chat or phone. Customers

can also easily check the status of 

their orders online and see a list of 

rebates they might be able to apply to

current, or even previous, orders. Since

Newegg is selling products they don’t

make themselves, they also provide

contact information for every major

electronics manufacturer. Newegg’s

site seems to be adequately prepared

for any customer service issue, and

their customers may naturally be “do-

it-yourself” technology types. Howeve

Newegg is not proactively providing

service or going out of their way to

connect with customers – they’re

providing static information for those

who seek it out.

Page 10: ArnoldOn: Service-How Technology Is Reshaping Customer Service

7/30/2019 ArnoldOn: Service-How Technology Is Reshaping Customer Service

http://slidepdf.com/reader/full/arnoldon-service-how-technology-is-reshaping-customer-service 10/21

Attributes

EmotionalBenefits

FunctionalBenefits

Approachable and honest, butalso impersonal and expected

Problem solvingfor the masses

Makes people feelsatised and calm

Traditional

51%

Treats me as

well as other

people

47%

49%Approachable

45%Provides me with

a simple way to

get what I need

49%Expected

43%Helps me sol

my problems

Satisfied

43% 41%Calm

40%Content 

48%Impersonal

47%Honest 

5

BASIC SERVICE

Q. What characteristics do you associate with the following types of service?

Q. Which of the following attributes below do you associate with the following types of service?

Q. How do the following types of service make you feel?

Page 11: ArnoldOn: Service-How Technology Is Reshaping Customer Service

7/30/2019 ArnoldOn: Service-How Technology Is Reshaping Customer Service

http://slidepdf.com/reader/full/arnoldon-service-how-technology-is-reshaping-customer-service 11/21

ECEPTIONAL SERVICE: CARIN,PERSONAL AN FLEIBLE

To elevate service from basic to exceptional, brands that have mastered efciency

must mix in emotion. Enterprises have to teach employees protocol, but they

should also encourage them to be “caring,” “personal” and “exible.” In our

survey, respondents told Arnold that they associated these three words with

exceptional service, building on speed and personal attention. Forty-one percent

said a brand with exceptional service also rewards them for their patronage.

Web retailers like Amazon, Patagonia, L.L. Bean and Zappos achieve exceptional

evels of service by injecting a human element, offering personal attention

and exhibiting a higher level of expertise. Customers are more likely to expect

he brand and its associates to understand them and their needs and provide

knowledge that will point them in the right direction. These companies

consistently invest in enhancing their product and service offering as well as in

raining their employees. In addition, they often go above and beyond by offering

perks like free or expedited shipping and no-hassle returns to ensure that the

customer completes the service experience feeling valued and appreciated by

he brand.

Zappos is often a go-to example for 21st-century exceptional service, and for good

eason. It has 500 employees in a call center in Las Vegas who receive seven

weeks of training on how to make their customers happy. In addition, Zappos

offers new employees a $3,000 bonus to quit if they no longer want to work

here. As a result, they are known for delivering very personalized attention to

heir customers, with some employees going so far as to send a free pair of shoes

o a best man who arrived shoeless at a wedding. Zappos goes beyond basic,

mpersonal service to connect with its customers, understand their needs and help

meet those needs in whatever way possible.

SERVICE IN ACTION

JOHN LEWIS

No one expects turn down service at a

department store, but in 2009, that’s

just what shoppers got at John Lewis in

High Wycombe, U.K.

When a heavy snowstorm blocked roads

and stranded shoppers, the staff opted

to close the store but let shoppers stay

the night. Associates made hot

chocolate, unpacked fresh linens and

made up display beds for their overnight

guests, according to BBC reports. They

kept children entertained by providing

television and kept adults informed via

regular reports over a PA system.

It is hard to imagine such treatment

elsewhere. John Lewis, which is

regularly voted Britain’s favorite retailer,

has a company culture that empowers

staff to follow protocol but make their

own decisions.

First, John Lewis has no employees.

They’re all partners who share in the

company’s prots. The better the

service, the more they make. Second,

one of the company’s core values is to

“show enterprise.” Staff can make

service decisions on the spot, allowing

them to step up and be exceptional a

occasionally, historic – as they were

during the great sleepover of 2009.

Finally, the company’s customer servic

ethic carries over online, where reps

answer tweets in an average of 3 hou

and 23 minutes and respond to rough

a third of Facebook postings.

Page 12: ArnoldOn: Service-How Technology Is Reshaping Customer Service

7/30/2019 ArnoldOn: Service-How Technology Is Reshaping Customer Service

http://slidepdf.com/reader/full/arnoldon-service-how-technology-is-reshaping-customer-service 12/21

Provides

me with

personalized

attention

42% 41%Provides me

with a speedy

response

41%Rewards me

 for do ing

business wit

a brand

41%Provides me

with expertise

Cared for

44%Confident 

42%44%Appreciated

42%Rewarded

43%Satisfied

Reliable

41% 41%Caring

40%Personal

40%Flexible

40%Expertise

Attributes

EmotionalBenefits

FunctionalBenefits

Reliable, exible and smart

Personalized, responsiveand rewarding

Makes people feel caredfor and condent

9

EEPTIONAL SERVICE

Q. What characteristics do you associate with the following types of service?

Q. Which of the following attributes below do you associate with the following types of service?

Q. How do the following types of service make you feel?

Page 13: ArnoldOn: Service-How Technology Is Reshaping Customer Service

7/30/2019 ArnoldOn: Service-How Technology Is Reshaping Customer Service

http://slidepdf.com/reader/full/arnoldon-service-how-technology-is-reshaping-customer-service 13/21

LUUR SERVICE: INNOVATIVE,PROACTIVE, ECLUSIVE

Luxury customers not only want to feel cared for, they want to feel pampered and unique.

Sales associates at all levels are an extension of the brand, but none more so than at the

uxury level. As Pedroza has said, luxury associates must “out-behave” their retail peers by

“bringing your humanity to work every single day.”

Luxury service builds on exceptional service by layering on innovation, initiative and

exclusivity. The Ritz-Carlton, a paragon of customer service, teaches its associates to call

guests by name, escort them door-to-door and anticipate unexpressed needs, like a hot cup

of tea after a full day of skiing. Apple has modeled its own retail service around the Ritz

Carlton, also greeting “guests” at the door, addressing them by name and setting up a

concierge-like help desk.

nnovation is also key to luxury service, as 20 percent globally expect luxe brands to deliver

new experiences. Automotive brands, such as BMW, Mercedes, Lexus and Volvo, may be at

he head of the pack here. Mercedes has adopted a “riven to elight” philosophy that has

become the guide for each and every interaction with the customer. The automaker views its

customers as exceptional and believes that they deserve incomparable, personal treatment.

ts employees pledge that every day they will look for opportunities to surpass expectations

and delight their customers.

Technology is helping to blur the lines between luxury and exceptional service. Brands that

deliver exceptional service are using technology to better anticipate customer needs and bemore proactive at delivering superior service to customers. Brands that deliver luxury service

will need to continue to push the boundaries, providing customers with experiences that are

completely unexpected and tailored even more precisely to the individual.

And when it comes to service in general, one thing is certain: Consumer expectations will

only rise. Whatever service a brand currently provides, it must continually explore ways to

keep ahead of customers through better and better service.

 

SERVICE IN ACTION

AMERICAN EPRESSCENTURION CAR

QUINTESSENTIALL

The American Express Black Card,

ofcially named the Centurion Card, is

known as a paragon of luxury service.

Members are personally invited to join

the exclusive club of cardholders. While

airline and hotel upgrades and access to

airline lounges are seen as great perks

for those carrying lower-tiered American

Express cards, those carrying the

Centurion Card – many of whom have

their own private jets and homes arou

the world – seek something more.

A 24-hour concierge service is dedicat

to Centurion Card holders. The

Centurion Concierge is shrouded in

secrecy, but the rumor mill suggests t

company has gone so far as to gather

and ship ead Sea sand for inclusion

in a London student’s school project.

Quintessentially is a luxury concierge

service that is receiving global attention

for specializing in “extreme service, from

the elite to the impossible.” Billed as

wish-fulllment, the service provides

well-connected experts 24 hours a day

to engineer the most exclusive and

unique experiences for their members.

They also have an online, invitation-only

social network, ELEQT, where membe

can wheel and deal with hundreds of

like-minded (and similarly well funded

peers and gain access to exclusive

events. From high-end travel to

exceptional gifts to everyday services

Quintessentially promises to provide

exceptional and uniquely tailored

experience for all of its members.

Page 14: ArnoldOn: Service-How Technology Is Reshaping Customer Service

7/30/2019 ArnoldOn: Service-How Technology Is Reshaping Customer Service

http://slidepdf.com/reader/full/arnoldon-service-how-technology-is-reshaping-customer-service 14/21

Provides me

with personal

attention

36% 31%Provides me

with

personalized

recommendations

and guidance

30%Provides me

with expertise

29%Provides me

with new

experiences

30%Anticipates

my needs

and delivers

proactive

service

Pampered

43% 38%Special

36%Unique

Exclusive

44% 33%Expertise

30%Caring

30%Personal

29%InnovativeAttributes

EmotionalBenefits

FunctionalBenefits

Exclusive and innovative

Proactive and unexpected

Makes people feelpampered and unique

23

LUUR SERVICE

Q. What characteristics do you associate with the following types of service?

Q. Which of the following attributes below do you associate with the following types of service?

Q. How do the following types of service make you feel?

Page 15: ArnoldOn: Service-How Technology Is Reshaping Customer Service

7/30/2019 ArnoldOn: Service-How Technology Is Reshaping Customer Service

http://slidepdf.com/reader/full/arnoldon-service-how-technology-is-reshaping-customer-service 15/21

THE IMPACT OFTECHNOLO:

In today’s world, the service experience extendsbeyond the transaction. Technology has

enabled brands to move beyond basic customer

service to deliver 24/7 service experiences.

Consumer expectations have grown, too.

Consumers want more than a solution to a

problem. They want to understand how their

brands can improve their lives.

Brands can harness technology in numerous

ways to deliver a superior service experience,

but there are three key areas on which we

believe every brand should focus.

THREE WAS BRANSSHOUL REFOCUS Integrating technologies to make service

more efcient and cost-effective

Building social programs to forge stronger

relationships and dialogue with consumers

Using data to anticipate customer

needs and deliver better service

Page 16: ArnoldOn: Service-How Technology Is Reshaping Customer Service

7/30/2019 ArnoldOn: Service-How Technology Is Reshaping Customer Service

http://slidepdf.com/reader/full/arnoldon-service-how-technology-is-reshaping-customer-service 16/21

INTERATIN TECHNOLOIESTO MAKE SERVICE MOREEFFICIENT AN COST-EFFECTIVE

Brands that are tapped into the latest technologies have a huge advantage

n providing better service to their customers. In addition, it’s easier than

ever for companies to integrate new software and platforms into the serviceexperience; there are countless startups specializing in niche services for

brands, from e-commerce solutions to digital in-store enhancements to

mobile payments. However, brands must be willing to experiment.

Starbucks, for example, recently announced a deal with mobile-payment

startup Square to speed up the checkout process. By downloading an app

to smartphones, customers show a barcode to the barista to have payments

automatically deducted from their accounts. Eventually, customers will be able

to pay for their grande skim latte simply by saying their name. The mobile app

will use PS technology to sync with Starbucks’ registers. When customers

enter a store, their names will automatically appear on the registers’ screens.

TECHNOLO ELIVERS BETTER,MORE, RESPONSIVE SERVICE

Q. To what degree does each of the statements below reect how you see technology i mpacting the

service you receive from brands today?

Globally believe technology improves thespeed of service they receive

76%

78%

Brazil

72%

U.K.

74%

U.S.

75%

China

84%

U.S. China

78%

Brazil

71%

U.K.

77% 85%

Page 17: ArnoldOn: Service-How Technology Is Reshaping Customer Service

7/30/2019 ArnoldOn: Service-How Technology Is Reshaping Customer Service

http://slidepdf.com/reader/full/arnoldon-service-how-technology-is-reshaping-customer-service 17/21

BUILIN SOCIAL PRORAMSTO FORE STRONERRELATIONSHIPS AN IALOUEWITH CONSUMERS

When it comes to social media, according to Arnold’s survey, 59 percent of people globally have posted either a positive or negative comment about a

brand regarding a service experience. Social media provides a unique

opportunity for brands to have a direct and casual conversation with

consumers, and many companies have beneted from great PR due to the

personalized relationships they’ve built with customers. However, social

media has the potential to go far beyond Twitter banter, and it’s important

or brands to explore how they can uplift the service experience through

social programs.

Singapore-based AirAsia, for instance, is working with Eptica, which provides

multichannel customer-interaction management software, to put customer

service at the heart of its online and social media strategy. The software is

ntegrated into the low-cost airline’s website and provides customers with

mmediate answers to their questions. It’s also integrated into the airline’s

Facebook page, where users can receive additional information.

n addition, U.K. supermarket giant Tesco is experimenting with its loyalty

program through a Facebook integration called Share & Earn. A test run of 

the program in July allowed savvy online shoppers to earn double points by

using Facebook to like, share and buy products. In exchange, Tesco learned

more about its consumers’ likes and interests through Facebook analytics.

Plus, its products are shared across every customer’s friend base, amplifying

the brand’s reach.

TECHNOLO ALLOWS FOR ANONOIN LEVEL OF IALOUE

Q. To what degree do you agree with the following statements?

Q. Have you ever posted comments through so cial media about a positive o r negative service experience?

Q. How often do you expect a brand to respond to comments made through social media?

U.S. China

48%Brazil

68%U.K.

45% 74%

BrazilU.K.U.S. China

39% 40% 83% 74%

U.S. China

62%U.K.

60% 84%Brazil

79%

71%

59%

59%

Page 18: ArnoldOn: Service-How Technology Is Reshaping Customer Service

7/30/2019 ArnoldOn: Service-How Technology Is Reshaping Customer Service

http://slidepdf.com/reader/full/arnoldon-service-how-technology-is-reshaping-customer-service 18/21

USIN ATA TO ANTICIPATECUSTOMER NEES ANELIVER BETTER SERVICE

One of the greatest benets to arise out of the digital revolution is the ability

to capture a wide range of consumer data that helps brands deliver better

service. Brands can use data to better understand customer behavior andshopping habits and to build highly targeted and effective customer-relationship

management programs. A sophisticated, well-planned CRM program allows

brands to relate to current customers while also pursuing new ones. More than

ever, consumers are open to providing personal information. According to our

survey, 67% of people globally are willing to share personal information with

brands that are relevant to them in order to improve the service they receive.

Carnival Cruise Lines, with the help of Arnold Worldwide, revamped its CRM

process by creating an email series that was highly personalized, educational

and interactive. Through its website, Facebook page and other channels, the

company identied potential cruise-goers and provided them with content

geared toward their interests and requirements. The effort has helped to

increase lead conversions by a staggering 56% over previous emails.

TECHNOLO ELIVERS MOREPERSONALIZE EPERIENCES

Q. How willing are you to share personal information with brands that are relevant to you to

improve the service you receive?

Q. To what degree does each of the statements below reect how you see technology impacting

the service you receive from brands today?

SERVICE IN ACTION

BIRCHBOBirchbox is an online beauty company that

supplies its members with personalized

beauty samples once a month. Birchbox

asks customers to ll out a prole to

customize their experience, with questions

including age, ethnicity, skin type, hair color,

eye color, level of beauty knowledge, be

style and special interests, to name a fe

Birchbox then uses all of this informatio

send products to the customers that t

their needs and deliver a personalized

beauty product experience.

U.S.

U.S.

China

China

56%

54%

86%

77%

Brazil

72%

U.K.

50%

U.K.

52%

Brazil

59%

67%

60%

Page 19: ArnoldOn: Service-How Technology Is Reshaping Customer Service

7/30/2019 ArnoldOn: Service-How Technology Is Reshaping Customer Service

http://slidepdf.com/reader/full/arnoldon-service-how-technology-is-reshaping-customer-service 19/21

33

IMPLICATIONS

BE RESPONSIVE ACROSS MULTIPLE CHANNELS

Consider all of the channels that you can use to respond to your customers, and

how quickly you can address their needs. Consumers are looking for service in

the channels that best t their lives. And brands that prioritize responsiveness

score highest among today’s Internet-enabled consumers. Our survey revealed

that 46 percent of consumers worldwide said they respect brands that respond

and contribute to discussions about customer service. Online and off, consumers

expect answers at ber-optic speed, and your brand will need to maintain

contact by every means available.

GET PERSONAL

Consumers spoiled for choice are uninterested and downright annoyed when

brands don’t take the time to get to know them. By providing a tailored experience,

brands are showing an interest in consumers’ lives, targeting the right customers

with the right service and wasting no one’s time. Thanks to shared data, you might

already know your customers better than you think you do – harness what you’re

already collecting to ratchet service up a notch.

PROACTIVELY LISTEN

Find ways to pre-empt customer service requests and proactively listen for your

customers’ needs. Today’s consumer demands more than reactive service. The

good news is that there are more ways than ever to listen to the consumer.

Through surveys, social media, face-to-face conversations, email and beyond, there

is no limit to the amount of feedback consumers can offer when it comes to

helping brands meet their needs. In fact, your customers are likely already talking

about your brand – you just need to nd out where, and tune in.

BE CREATIVE AND IMAGINATIVE

Brands that surprise and delight customers in unique ways are those th

win a lot of love. Especially when they provide consumers with highly

personalized, innovative experiences that make them feel special.

Creativity and imagination are critical components of elevating a brand’

service experience from basic to exceptional or luxury.

ANALYZE AND OPTIMIZE

Any platforms, software or programs that brands integrate into their se

offering should have a layer of data capturing and analysis that allows t

to better understand their customers and iterate how they operate. The

ultimate goal is to become proactive, instead of reactive – learning from

your past interaction with customers is a key step in this process.

INTEGRATE SOCIAL AND DIGITAL

There are no boundaries to today’s service expectations. Brands need to

seamlessly integrate their mobile and social strategies with their overal

service offering, using these channels as ways of engaging and, mostimportant, interacting with consumers. Consumers are demanding an

ongoing conversation with the brands they love through mobile and soc

channels. However, while opting out of these technologies is a surere

to get left behind, treating them as a throwaway add-on to “real” (i.e.,

in-person or call center) interactions can be just as bad. Approach them

same way you would any other customer communication – the online w

and the “real” world are one and the same now.

Page 20: ArnoldOn: Service-How Technology Is Reshaping Customer Service

7/30/2019 ArnoldOn: Service-How Technology Is Reshaping Customer Service

http://slidepdf.com/reader/full/arnoldon-service-how-technology-is-reshaping-customer-service 20/21

ARNOLSTRATEICINSIHTS

ROUP

Arnold On is brought to you by the Arnold Strategic Insights roup. This edition is

based on the results of a global online survey of 2,400 adults conducted in April 2012

on general attitudes and behavior, as well on secondary research.

The Arnold On series provides analysis and consumer insights across a variety of topics

and their relevant impact on how marketers communicate with consumers.

The content of this edition of Arnold On was developed by Sean O’Neill, VP, irector,

Business Strategy; eanna Zammit, irector, igiday Content Studio; Neela Pal,

Managing Partner, lobal irector of Brand and Business Strategy; and Lisa Borden,

EVP, lobal irector of Human Nature.

f interested in further discussion or a workshop, please contact us:

Lisa Unsworth

Chief Marketing Ofcer

[email protected]

617.587.8242

       S      T      R      A      T    E   G

   I  C   I NSI G H  T   

S     G    

R    O      U P 

Page 21: ArnoldOn: Service-How Technology Is Reshaping Customer Service

7/30/2019 ArnoldOn: Service-How Technology Is Reshaping Customer Service

http://slidepdf.com/reader/full/arnoldon-service-how-technology-is-reshaping-customer-service 21/21